The bottled water category in India has experienced significant growth in recent years driven by factors such as rising health awareness, urbanization, and tourism. Bottled water offers convenience compared to tap water due to concerns over quality and safety. Key players dominate the market while new entrants face challenges of distribution and brand loyalty. The market is projected to continue growing substantially in the coming years given India's young population and increasing disposable incomes.

1. Bottled Water

2. Category analysis:-
Category definition (beverages)
Definition and Market Share
Origins of Bottled Water
Factors Driving the Category
Product lines and mixes
SWOT analysis of the category
Industry Trends
Competitor Analysis:-
Potters 5 forces analysis
Key players
India As a market
Key players share
Market Analysis:-
Market size and share
Market segmentation
Brand share
Pricing
Distribution analysis
Drivers, Innovations and Challenges
A Srikrishna 01
Dishant Bhatt 28
Jayesh Gawde34
Piyush Sinha 46
Suraj Shivan 72

3. Category Definition (beverages)
 Beverages category on the whole has been growing in
India.
 Non-alcoholic beverages includes soft drinks, energy
drinks, juices & milk
 Bottled water sector includes sparkling water, spring
water and purified/table water.
 Aggregation of Bottled water, carbonated bottled water,
flavoured bottled water and functional bottled water.

4. Category Definition (beverages)
Beverages
Water Flavored
Nonalcoholic
Milk Juices
Alcoholic
Wine,Distilled
spirits,Beer
etc

5. Definition and Market Share
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9000
India
Bottled Water
Sum of
2008
Sum of
2009
Sum of
2010
Sum of
2011
Sum of
2012
Sum of
2013
Research Sources:
Soft Drinks: Euromonitor from trade sources/national statistics
* In mn litre
Category Definitions
Bottled Water
This sector includes
sparkling water, spring
water and purified/table
water. This is the
aggregation of still bottled
water, carbonated bottled
water, flavoured bottled
water and functional bottled
water.

6. Origins of Bottled Water

7. Cost of a
Manufacturing
a One litre Bottle

8. General Scene and Market Overview
 Bottled water off-trade value sales grow by 31% to touch
Rs115.2 million
 Average unit price grows by 6% in 2013
 Bottled water off-trade value sales are predicted to grow
by a value CAGR of 18% in constant 2013 prices to touch
Rs262 billion by 2018

9. Factors Driving the Category
 Burgeoning population
 Rapid Urbanization
 Phenomenal increase in Tourism
 Inability of central local government to provide clean
drinking and safe draining water
 Strained government resources

10. Factors Driving the Category
 Rising health awareness among consumers in tier II and
tier III cities.
 Many consumers who do not have water purifiers at
home bought bulk water bottles of 20 litres on a more
frequent basis in 2013.
 In addition, on-trade sales of bottled water also recorded
an increase as consumers continued to ask for bottled
water when dining out over the review period.

11.  Spring Water is water derived from an underground formation from
which water flows naturally to the surface of the earth. Spring
water must be collected only at the spring or through a borehole
tapping the underground formation feeding the spring
 Mineral Water is natural water containing not less than 250 parts
per million total dissolved solids.
 Sparkling Bottled Water is water that, after treatment and possible
replacement with carbon dioxide, contains the same amount of
carbon dioxide that it had as it emerged from the source.
 Fluoridated water contains fluoride added within the limitations
established in the FDA Code of Federal Regulations. This category
includes water classified as "For Infants" or "Nursery
Product Lines and Mixes

12.  Still bottled water continues to be the only format in
category
 Other types of bottled water including carbonated
bottled water, flavoured bottled water and functional
bottled water remained in their nascent phase with
merely one or two brands available.
 These premium varieties continued to be picked up
mainly by niche premium class consumers
Product Lines and Mixes

13. STRENGTH
1. Huge customer base
2. Low cost of production
3. Improper groundwater laws
4. Convenient to get
OPPORTUNITY
1. Rising Middle Class
2. Low per capita consumption
3. Surging Tourism
4. Surge in disposable incomes
5. Rising Health awareness in Tier
II and Tier III cities
THREATS
1. Environnemental Hazards
2. Substitutes
3. Compétition
4. Water Purifier
WEAKNESS
1. Health Risks
2. Low brand loyalty
SWOT Analysis

14.  Bottled Water recorded further growth due to rising
health awareness among the consumer base in Tier ii and
Tier iii cities.
 In addition on trade sales of bottled water also recorded
an increase as the number of people buying bottled water
bottles in the hotels increased.
 2013’s total bottled water sales were recorded at 24%.
The key drivers to growth of bottled water was rising
consciousness and rising awareness about water-borne
diseases.
 Additionally youngsters did not carry bottles around
and depended on RTD packaged water.
Trends

15.  Still Bottled water continued to record the maximum
Volume/Value growth due to being the only format
available, with consumers starting to prefer bottled water
to tap water due to safety issues.
 Bottled water’ s off trade value grew by 31% in 2013.
 Bottled water brands are available in almost all on-trade
channels from small kiosks to big restaurants.
 Most of the consumers prefer to have bottled water
instead of fresh water at restaurants because of growing
concerns of safety and quality
 On-Trade bottled water retail value sales grew by 34% in
2013.
Industry Trends

16. Porter’s Five Force Analysis
Competitive rivalry
– very high
Bargaining power of
suppliers – moderate
to high
Bargaining power of
buyers - high
Threat of
substitutes – high
Threat of new
entrants –
moderate to high

17. Bargaining Power of Suppliers
– moderate to high
 Limited number of bottle manufacturers, bottling plant equipment
manufacturers; deionization, reverse osmosis and filtration equipment
manufacturers
 Workers/casual employees can also be considered suppliers, having a
low bargaining power
 High transport costs increases the overall cost
 Switching costs – High switching costs due to limited number of bottle
manufacturers and other machine suppliers
 Threats of forward integration – Limited threat

18. Bargaining Power of Buyers - high
 Buyers (resellers and final consumers) have many
suppliers to choose from.
 Resellers - Significant portion of sales is through the
main four supermarkets, while the remaining is through
a large number of independent outlets. Several bottled
water suppliers stated that resellers demand more of the
overall profit margin (almost 50% of the profit margin)
 Final consumers – Consumers prefer convenience (ease
of accessibility), purity (fitness and health) and
portability (ease to carry over glasses or cups of water).
The large number of suppliers increases the bargaining
power of buyers
 Threat of backward integration – considered to be low
 Switching costs – As the price of bottled water is cheap
switching costs is considered to be low.

19. Competitive Rivalry – very high
 Large number of manufacturers. Visiting any local supermarket one
would find bottled water of many manufacturers being displayed.
 The generic nature of the product and current low price levels lead to
low switching costs
 Market growth rate – High growth rate at least over the next three to
four years.
 Distribution costs – High transportation costs affects suppliers ability to
have an island-wide presence. This would benefit the large established
suppliers

20. Threat of Substitutes – high
 There are substitutes in the form of pipe-borne water, carbonated drinks
and fruit juices. Moreover tea, coffee, milk and alcohol are considered
standard substitutes.
 Innovative products such as flavoured water, non-calories water and
vitamin added water (enhanced waters) could also be considered
substitutes.
 Switching costs – considered to be low as the price of bottled water is
low

21. Threat of New Entrants
– moderate to high
 Capital costs – moderate investment costs
 High industry growth rates encouraging new entrants
 Economies of scale – The unit cost of production is low and continues to decrease
with use of the latest technology.
 Differentiation – Currently suppliers mainly produce a generic bottled water
product. Going forward new entrants may introduce ‘enhanced waters’.
 Government regulations – Strict regulations introduced by the Ministry of Health
and impending regulations is making operations difficult for existing and even
more difficult new entrant
 Distribution channels – As incumbents dominate the market, new entrants
struggle to gain distribution channels/networks
 Brand loyalty - As incumbents dominate the market new entrants struggle to
develop brand loyalty for a generic product.

22. Key Players

23. India as a Market
Rapid income growth, a young and growing population and a continued influx
of investments underline the potentially fruitful opportunities on offer on the
consumer side. India has a young and rapidly growing population of more than
1.2bn
India's 2012 estimated per capita GDP of USD1,680 suggests that consumer
spending is coming from an extremely low base, this translates into tremendous
room for growth
The bottled or the packaged water category, which according to the Bureau of
Indian Standards are more than 1,80 in number, has been witnessing an
unprecedented amount of action.

24. India has an impressive rewards score of 59.0, rating it close to
China and Indonesia on this metric. However, this potential
remains difficult to exploit, particularly for foreign consumer
goods investors, with market challenges such as poor
infrastructure and restrictive regulations dampening India's overall
investment attractiveness
India’s Risk/Reward Score

25. Bottled Water Market-Snapshot

26. Market Size(Volume)

27. Market forecast
Bottled water value sales growth in local currency
terms for 2014 = +16.6%; CAGR 2013 to 2018= +15.4%
The Indian soft drinks market is well placed to offer
the fastest absolute and relative growth across all
global markets

28. Growth Forecast
Forecast Sales- Volume
million litres 2013 2014 2015 2016 2017 2018
Still Bottled Water 8,042.70 9,782.30 11,736.40 13,893.50 16,272.90 18,785.90
Forecast Sales- Value
Rs million 2013 2014 2015 2016 2017 2018
Bottled Water 1,15,215.00 1,38,494.20 1,64,765.10 1,94,601.80 2,27,203.10 2,61,637.60

29. Market Segmentation
Rural Vs Urban
Urban/Rural 2008 2009 2010 2011 2012 2013
Rural 13.5 15.0 15.0 16.0 18.0 19.0
Urban 86.5 85.0 85.0 84.0 82.0 81.0
The past 5 years have seen a slow but steady growth in the Rural Market
as consumers become more aware of concepts of hygiene and safety.
Local players who have good distribution networks in a 100 km radius
have
affected the big brands by being able to cut costs on reaching the market
quickly which has not allowed them to penetrate the rural markets
effectively.

30. Nation Wide Segmentation

31. Market Segmentation (Packaging Size)

33. Brand Share

34. Brand Share
 The Indian bottled water market is led by Parle Bisleri,
which held a 33% retail volume sales. It maintained its
leadership due to its high brand loyalty and strong
distribution.
 It was followed by PepsiCo (17%) with Aquafina.
PepsiCo focused on promoting Aquafina by offering
discounts and more margins to retailers. The company
also expanded distribution to reach small shops and
kiosks which cater to consumers on-the-go.
 Coca-Cola was at 13% with Kinley
 The three major accounted for a 62% total volume share.

35. Brand Share
 From the brand share data set it is seen that Bisleri has
been dropping market share from the years 2009-13
while the overall market size is growing.
 Kinley seems to be the biggest gainer piggybacking on
the Coca Cola distribution network.
 International players including PepsiCo and Coca-Cola
focused on enhancing their presence in bottled water
through their strong distribution networks due to their
established presence in carbonates.
 This has led regional players, such as Parle Bisleri,
United Breweries and Manikchand Group, to witness a
decline in their presence.

36. 1. BISLERI
• Parle’s Bisleri is the Market Leader in terms of Market share having
33% Market Share thanks to its high Brand Loyalty and robust
Distribution
• Sizes: It is available in 8 pack sizes:
250ml cups, 250ml bottles, 500ml, 1 litre, 1.5 litre, 2 litre, 5 litre, and
20 litre
• Products:
1. Bisleri: Normal Mountain Mineral Water
2. Bisleri Vedica: Mountain Fresh Spring Water
3. Bisleri Soda: Carbonated Bisleri Soda Water
Individual Products

37. 2. AQUAFINA
•PepsiCo’s product Aquafina recorded the fastest increase in value share,
gaining one percentage point to hold 17%
•PepsiCo focused on promoting Aquafina by offering discounts and more
margins to the sellers
•Products:
1.Aquafina: Normal Mineral Water
2. Aquafina FlavorSplash: Flavored Mineral Water Variant with Peach,
Orange, Berry, Strawberry and Kiwi flavors

38. 3. B’lue
• In 2013, Danone Narang Beverages launched a flavored bottled water under the
Brand Name B’lue, which is the first product in flavored water, which is a
negligible market.
•Variants( Flavors)
1. Awesome Apple
2. Lively Guava
3. Peppy Peach
4. Tasty Orange Lime
• This product was aimed at young consumers who are willing to experiment
• Available in standard PET Bottles

39. Pricing
Brands Company name Pack size Price (INR)
Aava Sheelpe Enterprises 1 litres 18.0
Aquafina PepsiCo India Holdings Pvt Ltd 1 litres 20.0
Aquafina PepsiCo India Holdings Pvt Ltd 1 litres 15.0
Aquafina PepsiCo India Holdings Pvt Ltd 1 litres 20.0
Bailey Parle Agro Pvt Ltd 1 litres 18.0
Bailley Parle Agro Pvt Ltd 1 litres 18.0
Bailley Parle Agro Pvt Ltd 1 litres 15.0
Bisleri Vedica Bisleri International Pvt Ltd 1 litres 40.0
Bisleri Vedica Mountain Water Bisleri International Pvt Ltd 1 litres 18.0
Bisleri Vedica Mountain Water Bisleri International Pvt Ltd 1 litres 18.0
Bisleri Vedica Mountain Water Bisleri International Pvt Ltd 1 litres 18.0
Evian Narang Danone Access Pvt Ltd 1 litres 175.0
Himalayan Mount Everest Mineral Water Ltd 1 litres 40.0
Himalayan Tata Global Beverages Ltd 1 litres 40.0
Himalayan Natural Mineral Water Mount Everest Mineral Water Ltd 1 litres 40.0
Kinley Coca-Cola India Pvt Ltd 1 litres 20.0
Kinley Coca-Cola India Pvt Ltd 1 litres 18.0
Kinley Coca-Cola India Pvt Ltd 1 litres 25.0
Kinley Coca-Cola India Pvt Ltd 1 litres 18.0
Qua Danone Narang Beverages Pvt Ltd 1 litres 45.0
Qua Danone Narang Beverages Pvt Ltd 1 litres 45.0
Tata Himalaya Tata Global Beverages Ltd 1 litres 40.0

40. Pricing
 The prices of the three major brands are on similar
ranges for the 250 ml, 500 ml and 1 litre.
 The majority of the leading still bottled water brands
continued to be positioned in the standard segment in
2013. On the other hand, premium brands such as Evian
and Perrier cater to higher-income consumers and tend
to perform well in the on-trade channel.
 Mid-priced brands such as Himalayan cater to urban
consumers who prefer to pick still natural bottled water.
 Pure Life a product by Nestle is positioned in the low-
end segment.

41. Distribution Analysis
Bottled water see’s a majority of their sales through store based
retailing outlets especially Kirana stores/ Grocery retailers.
Parle Agro, Coco Cola and Pepsi have been able to leverage their
wide distribution network and long standing presence in the Indian
market and consumers minds.

42. 1. ON-TRADE CHANNELS
•On trade channels refer to sale of licensed good like water where the
water is to be consumed on the premises
•On Trade channels include restaurants, hotels, kiosks
2. OFF-TRADE CHANNELS
•Off trade channels refer to sale of licensed good like water where the
water is to be consumed off or away the premises
•Off Trade channels include retail outlets, supermarkets, hypermarkets
etc
Distribution Channels
Categories 2008 2009 2010 2011 2012 2013
Bottled Water - Off-trade Volume 2,734.3 3,290.6 3,966.8 5,126.5 6,537.1 8,042.7
Bottled Water - On-trade Volume 1,143.7 1,365.4 1,652.6 2,158.8 2,777.2 3,518.3

43. Driver - Hygiene Conscience
and Awareness
 Hygiene conscience has been increasing among Indians with the increase in
literacy.
 India’s adult literacy rate is 74.04 % (2011) and youth literacy rate is 81.1 %
(2006)

44. Driver - Increase in disposable income
 Annual disposable income has increased to 1,647,822.2 million USD in 2014
from 1,587,620.9 million USD in 2013

45. Drivers - Others
 Portability – Portability is one of the major factor that has
influenced the use of Bottled Water. People do not like to
carry lots of water with them and thus prefer bottled water
while on journey or a long outdoor activity.
 Security – Bottled water has easily captured the imagination
of consumer in the form of sense of security.
 Increase in distribution channels – A huge network of
dealers are spread throughout the country. For example,
unlike its competitors who concentrate only in urban areas,
Bisleri is found everywhere. It has a countrywide
distribution.

46. Challenges
 People have apprehensions about value for money.
 Water is a basic commodity that is easily available.
 Traditional water purifying methods and an increase in the use of
water purifiers, which need a one time investment, are a big threat to
the growth of the bottled water market in India
 Duplicate and filled water in un-destructed used water bottles.
 Other beverages and soft-drinks in the market.
 Polyethylene terephthalate (PET), the petroleum-based resin used for
drink bottles, is not a traded commodity. Beverage manufacturers
cannot enter into fixed price contracts for PET
 The bottled spring water industry, which pipes its water straight
from natural springs or municipal water sources, is increasingly
being attacked by government, utilities, and environmentalists.

47. Challenges
 MYTH ONE – BOTTLEDWATER UNITS ARE MINTING MONEY
While going through various articles and news items in print / electronic
media, a general impression has been created that bottling units are minting
money as they do not pay for raw material [ bore well water ] and sell one
litre water for Rs 15.
 The fact is that bottled water market is completely retailer dominated
commodity and having a lions’ share. Taking out a good margin for distributor
too , manufacturer is left with a wafer thin margin for himself. The “FREE”
water gathers considerable packaging cost till it reaches the dispatch stage.
 Moreover, indirect cost includes steep marking fee charged by Bureau of
Indian Standards [ BIS ], Salaries of trained Chemist / micro biologist
and maintaining a full fledged laboratory adds huge cost to regular
processing unit expenses.
 As bottled water is a very difficult commodity to transport, its delivery
charges are steep and eats up the margins. Credit sales, late realization,
competition hence makes it a difficult product to produce , distribute and
market unless scientific study is not conducted beforehand.

48. Innovations
 Research and development in addition of better minerals
and vitamins.
 Flavored bottled water bottles.
 More user friendly and innovative packaging.
 Premium bottled water.

49. Thank YOU
......... Grab a bottle of water now